The newly appointed chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, has deviated from the approach of his predecessor by claiming that it led to “uncertainty” in the market. Atkins expressed these sentiments during his initial public address after assuming the role of SEC chair. He was addressing participants at the crypto roundtable event, which the regulatory watchdog held in Washington, DC, where attendees looked into major issues pertaining to digital assets.
Regret Over Prior Regulations
Atkins did not hold back in his criticism over the past four years of the SEC’s treatment of cryptocurrency regulations. He stated that this policy had, in essence, mitigated innovation within the industry. The new agency head was quoted as saying, “Unfortunately, innovation has been stifled for several years because of the market and regulatory uncertainty that the SEC has unfortunately implemented.” This statement illustrates his position that too much red tape from regulators has stunted the progress of the cryptocurrency sector in America.
Pledge for Guidance Moving Forward
In sharp contrast to his condemnation of the past, Atkins offered the assurance that regulatory policy under his stewardship will change for the better in the area of guidance programs designed for the crypto assets industry.
He expressed his willingness to work alongside the U.S. Congress and President Donald Trump’s administration with the particular objective of bringing definable clearness to the digital asset ecosystem. In Atkins’ perspective, promoting the digital assets sector relies heavily on having regulations framed under a “rational fit for purpose” blueprint. He also went on to say that the said framework would be important in the aspect of risk mitigation within the industry, which means clarity serves both the purpose of industry growth and investor protection.
Change in Governance and Shift in Enforcement Focus
Paul Atkins was formally installed as the new SEC chair, replacing Gary Gensler, a week ago. Gensler’s watch marked the SEC’s increasing responsiveness to the crypto sector, which some people started calling a “regulation by enforcement” paradigm. During this time the agency prosecuted many lawsuits against a number of crypto companies, including leading exchanges like Coinbase and Binance. After Gensler, in the hands of acting chair Mark Uyeda, the SEC is said to have closed a number of investigations and dropped the majority of lawsuits they had queued against crypto companies.
Importantly, during this timeframe, the agency’s Ripple lawsuit saga came to a close, marking an endpoint to one of the major cases the SEC had filed in December 2020. This marks the transition to Atkins’ leadership after this period of change in enforcement activity.
Context of the Roundtable Series
It was during the “Know Your Custodian: Key Considerations for Crypto Custody,” which served as Atkins’ fourth speaker at the event and was moderated by the crypto force. This roundtable is the third in a planned series of five discussions organized by the SEC’s crypto force. The purpose of the roundtable is for regulators to gather critical data from analysts in order to effectively inform the work of the SEC, aimed at achieving constructive regulations for crypto assets. These determinations are grounded in the need to gain comprehensive knowledge of the industry prior to drafting new regulations.
Atkins’ Mission and Background
Paul Atkins is back at the SEC after previously serving as a commissioner from 2002 to 2008, so he has prior experience at the agency. He was appointed to that position by former U.S. president George W. Bush and now serves as chair after being appointed by Trump. Notably, he is the 34th chairman of the SEC.
When returning to the agency, Atkins released a statement reaffirming their dedication to the SEC’s core mission. “As I return to the SEC, I am honored to stand with my fellow commissioners and the dedicated professionals of the agency to further its mission, which includes facilitating capital formation, maintaining fair, orderly, and efficient markets, and protecting investors,” he added. “We will ensure that the U.S. remains the most secure country in the world to do business and invest.” His return as chair and these initial comments indicate that there is going to be a shift in the way the SEC will deal with the challenging and fast-changing world of digital assets regulation, focusing on collaboration and clarity.
